Earnings
Robert Half's staffing arm returns to growth for the first time since 2022; shares jump after hours
The recruiter guided to about 3% adjusted revenue growth in the fourth quarter as hiring trends improved into October.
HedgeWeekly News Desk ·
Robert Half reported third-quarter revenue of $1.359 billion on Thursday, up 0.4% from $1.354 billion a year earlier and down 0.2% after adjusting for billing days and currency. Net income rose to $49.9 million, or 49 cents a diluted share, from $42.9 million, or 43 cents. Benzinga said the results topped expectations, and the shares rose 10.7% to $41.70 in after-hours trading.
The recruiter's talent solutions business drove the improvement. Contract talent revenue rose 1.7% to $758.8 million and permanent placement climbed 6.2% to $116.9 million, while the Protiviti consulting unit fell 2.9% to $483.5 million. Within contract talent, technology grew 4.6% and finance and accounting 2.2%, while administrative and customer support declined 2.7%. Management said on the call that talent solutions returned to adjusted year-over-year growth, and earnings per share to annual growth, for the first time since 2022.
For the fourth quarter, Robert Half guided to revenue of $1.285 billion to about $1.39 billion and earnings of 36 to 46 cents a share; the revenue midpoint implies roughly 3% adjusted growth. It assumes talent solutions grows 1% to 5% and Protiviti is flat to up 4%. Early October was firmer: contract talent revenue was up 2% in the first two weeks and permanent placement up 5% in the first three, though management cautioned against overreading those weeks. Chief executive Keith Waddell said in the release that hiring activity continues to improve.
Why it matters: Robert Half places finance, accounting and technology staff, so its contract and permanent-hire trends offer an early, company-level read on white-collar demand after a long stretch without growth since 2022. Protiviti is also a window into banks: management said anti-money-laundering remediation work picked up after recent enforcement actions against large financial institutions and should run for several quarters. On AI, Waddell argued the technology is adding to the skills employers want rather than broadly displacing specialised roles. The next test is whether Protiviti returns to year-over-year growth in the fourth quarter, as management expects; buybacks shrank to $6.8 million in the first nine months from $92.1 million a year earlier, while dividends held near $180 million.